Hasbro reportedly offered to buy Mattel

Shares in Mattel reacted positively to the news as they shot up by 24% during Friday afterhours trading.

According to a report on the WSJ, Hasbro had recently approached Mattel with the deal.

Toymaker Hasbro Inc has made a takeover approach for rival Mattel Inc, the Wall Street Journal reported on Friday. It was unclear whether Hasbro had offered any terms for a deal or whether any further discussions had taken place, said the people, who insisted on anonymity because the talks were private. Both toymakers have struggled in recent years to maintain relevancy in an increasingly digital world, combating consumer trends by injecting more and more technology into their products, and launching their own virtual apps as well. Mattel, based in El Segundo, California, did not immediately respond to a request for comment. Hasbro, which makes Disney Princess Dolls and Nerf guns, rose about 3.3 per cent.

Hasbro has a market value of $11.4 billion, and its stock is up almost 18 percent this year.

The bankruptcy filing in September by Toy "R" Us, the largest toy retailer in the USA, highlighted struggles that the sector is facing including children's preferences shifting from traditional toys to electronics and online competition increasing.

Mattel market value stands at about $5 billion this year, while Hasbro claims more than double that at $11 billion. Shares of Mattel have dropped by 47% during the year, valuing the business at just over $4.8 billion and making it a target for a takeover.